Water is a utility cost that is tied to nearly every operational process in a hotel, from guestrooms and kitchens to cooling towers, laundry, and landscaping. The way properties track and account for water consumption may differ and so can the accuracy of the data. 

The 12th Revised Edition of the Uniform System of Accounts for the Lodging Industry (USALI®) changes that. Through its new Energy, Water, and Waste (EWW) schedule, hotels are now required to report both cost and consumption of water as part of their financial statements. 

Why Water Reporting Matters in Hospitality 

Water use directly affects operating costs, asset efficiency, and environmental performance. Standardized reporting under USALI 12 brings structure to this area of operations that is prone to inconsistency, making water data comparable across departments and properties. 

Accurate water data helps hotels understand true consumption patterns, identify inefficiencies, and manage rising utility costs. For investors and owners, it also provides a common reporting language that aligns financial and operational performance on water, which is a growing focus as water scarcity risk rises globally. 

Water data also helps hotels understand risk. Water scarcity, drought, and infrastructure stress are already affecting many markets. These conditions can disrupt operations and directly impact guest experience through low water pressure, restricted amenities, or service interruptions. Reliable data allows teams to see where properties are vulnerable and plan accordingly. Without consistent water data, it is difficult to link daily water use to risk management, resilience planning, and long term asset performance. 

What’s Covered Under the USALI Water Account 

The Water section of the EWW schedule replaces and expands the earlier utilities framework. It includes:  

• Water – Municipal or Other Sources – purchased water from public utilities and alternative sources such as wells, harvested rainwater, and reclaimed or treated water. 
• Sewer – costs associated with wastewater collection and treatment, typically billed alongside or as a percentage of water use. 

Each of these accounts is reported in both financial terms (monetary cost) and operational terms (gallons or cubic meters). From these figures, standard intensity metrics are derived, including Water per Occupied Room, Water per Available Room and Water per Square Foot, to enable clearer performance insight. Water cost, consumption, and intensity each tell a different story about performance. Cost shows what a hotel pays, but consumption and intensity explain how water is actually being used and how efficiently a property operates. Looking at all three together provides a clearer, more accurate picture of water performance and risk. 

Preparing and Managing Your Water Data 

As with energy data, water reporting under USALI 12 depends on reliable, normalized, and well-documented information. 

Common areas to review include: 

1. Align billing periods to financial months. 
   Because utility billing cycles often differ from monthly accounting periods, data should be normalized so that reported usage matches the accounting month. Start by verifying start and end dates for each billing cycle. 
2. Check for shared or unmetered systems. 
   In many hotels, irrigation, cooling towers, or pools may not be separately metered. Where estimates are used, document calculation methods and note any assumptions. 
3. Review invoice capture and entry accuracy. 
   Small data-entry errors are common and can compound when aggregating results across properties. Establish a simple monthly review process to ensure completeness and accuracy. 
4. Verify units and conversions. 
   Maintain consistency across suppliers and sites, particularly between gallons and cubic meters. Always confirm conversions before aggregating data for financial use. 
5. Keep complete documentation. 
   Each reported figure should link back to a verified source, such as a utility bill, submeter log, or engineering record. Clear documentation ensures audit readiness and internal consistency. 

Using Water Data Effectively 

With these metrics in place, hotels can start using water data more strategically. For example, standardized reporting enables comparisons within a portfolio and supports benchmarking against datasets such as the Cornell Hotel Sustainability Benchmarking (CHSB) Index. Analyzing water data trends also helps identify seasonal variances and opportunities to improve efficiency. Over time, this structure creates a stronger foundation for both operational decision-making and financial reporting.